SEC Sues Former CalPERS Chief Executive, Former Board Member

The legal woes continue for the former CalPERS CEO and one former board member. Two years ago, the State filed suit against Alfred Villalobos, now the Federal Government has joined in the action.

The Securities and Exchange Commission sued the former executive for actions in connection to alleged bribery and fraud. Villalobos secured large-scale investments for his private equity firm. In exchange, Villalobos earned $58 million in fees.

However, the firm Apollo Global Management, required that investment partners disclose fees that they would earn. The lawsuit claims that Villalobos and one other man, former CalPERS CEO Fred Buenrostro, faked documents showing that CalPERS knew of the fees. Those documents resulted in $20 million in payments that Villalobos would not have received otherwise.
From the Sacramento Bee:

The Securities and Exchange Commission today sued CalPERS’ former chief executive, as well as former board member Alfred Villalobos, in connection with an alleged bribery scheme that rocked the big California pension fund.

In a lawsuit filed in U.S. District Court inNevada, the agency sued Villalobos and his longtime friend Fred Buenrostro, the former chief executive of CalPERS, alleging they engaged in a “fraudulent scheme.”